LTCG tax relief on cards? Sebi wants tax scrapped for foreign investors

The buzz around removal of long-term capital gains (LTCG) tax on equities is gaining traction, with the market regulator also urging the government to scrap it. The Securities and Exchange Board of India (SEBI) has reportedly requested the government to consider scrapping LTCG tax levied on foreign investors.The proposal comes as authorities look for ways to revive India's equity markets, which have been performing below the level of their emerging market counterparts.According to a Reuters report, SEBI has also suggested extending tax relief to domestic mutual fund investors. Under its proposal, investors switching from existing mutual fund holdings to other schemes would not have to pay LTCG tax on the transaction, sources quoted in the report said.The recommendations have been submitted ahead of the annual Union Budget scheduled for February.